Rationality in the Joint Allocation of Private and Public Goods

Abstract:
In this study we assume that household demand for private and public goods are the e¢cient outcomes of the household decission process. From the efcient assumption we derive testable properties of these demands and we identify some characteristics of the intrahousehold distribution of the household expenditure. These results extend Chiappori (1988) main results to the case of joint consumption of private and public goods.